A stock with low volatility can be reassuring, but it doesn’t always mean strong long-term performance. Investors who prioritize stability may miss out on higher-reward opportunities elsewhere.
Finding the right balance between safety and returns isn’t easy, which is why StockStory is here to help. Keeping that in mind, here are three low-volatility stocks that don’t make the cut and some better opportunities instead.
Jacobs Solutions (J)
Rolling One-Year Beta: 0.89
With a workforce of approximately 45,000 professionals tackling complex challenges from water scarcity to cybersecurity, Jacobs Solutions (NYSE: J) provides engineering, consulting, and technical services focused on infrastructure, sustainability, and advanced technology solutions.
Why Should You Dump J?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 2.5% annually over the last five years
- Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
- Low returns on capital reflect management’s struggle to allocate funds effectively
Jacobs Solutions is trading at $143.80 per share, or 21.4x forward P/E. Check out our free in-depth research report to learn more about why J doesn’t pass our bar.
Plug Power (PLUG)
Rolling One-Year Beta: 0.82
Powering forklifts for Walmart’s distribution centers, Plug Power (NASDAQ: PLUG) provides hydrogen fuel cells used to power electric motors.
Why Should You Sell PLUG?
- Annual sales declines of 12.6% for the past two years show its products and services struggled to connect with the market during this cycle
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 6,283 percentage points
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
At $1.44 per share, Plug Power trades at 2x forward price-to-sales. To fully understand why you should be careful with PLUG, check out our full research report (it’s free).
Brink's (BCO)
Rolling One-Year Beta: 0.67
Known for its iconic armored trucks that have been a fixture in American cities since 1859, Brink's (NYSE: BCO) provides secure transportation and management of cash and valuables for banks, retailers, and other businesses worldwide.
Why Does BCO Worry Us?
- Sales trends were unexciting over the last two years as its 3.5% annual growth was below the typical business services company
- Free cash flow margin shrank by 1.1 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
Brink’s stock price of $113.69 implies a valuation ratio of 14.2x forward P/E. Read our free research report to see why you should think twice about including BCO in your portfolio.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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